Robinhood Markets (NASDAQ:HOOD) Trading Down 2.8% - Here's Why

Key Points

• Robinhood Markets (NASDAQ:HOOD) saw a significant decline of 2.8% in its stock price, dropping to $113.97 after closing at $117.28 the previous day.
• Analysts' ratings for Robinhood have varied, with Morgan Stanley increasing its price target to $110, while others maintain buy or sell ratings, leading to a consensus rating of "Moderate Buy" and a price target of $100.31.
• Insider transactions revealed that two executives sold a total of 85,113 shares for approximately $8.59 million, indicating a decrease in their ownership stakes in the company.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) dropped 2.8% during trading on Tuesday . The company traded as low as $114.51 and last traded at $113.97. Approximately 19,321,533 shares were traded during trading, a decline of 54% from the average daily volume of 41,552,770 shares. The stock had previously closed at $117.28.

Analyst Ratings Changes

Several analysts recently weighed in on HOOD shares. Morgan Stanley increased their price target on Robinhood Markets from $43.00 to $110.00 and gave the company an "equal weight" rating in a report on Tuesday, July 15th. The Goldman Sachs Group raised their price target on Robinhood Markets from $91.00 to $104.00 and gave the stock a "buy" rating in a report on Monday, July 7th. Redburn Atlantic reissued a "sell" rating and issued a $48.00 price target (up previously from $40.00) on shares of Robinhood Markets in a report on Monday, June 9th. Compass Point upped their target price on Robinhood Markets from $64.00 to $96.00 and gave the company a "buy" rating in a research report on Friday, June 27th. Finally, Barclays upped their target price on Robinhood Markets from $102.00 to $120.00 and gave the company an "overweight" rating in a research report on Thursday, July 31st. Eleven investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $100.31.

Robinhood Markets Stock Down 1.3%

The firm has a market capitalization of $102.84 billion, a PE ratio of 58.75, a PEG ratio of 3.71 and a beta of 2.36. The stock has a 50-day moving average price of $104.19 and a 200 day moving average price of $71.88.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The company reported $0.42 EPS for the quarter, topping the consensus estimate of $0.30 by $0.12. Robinhood Markets had a return on equity of 17.48% and a net margin of 50.13%.The firm had revenue of $989.00 million during the quarter, compared to analysts' expectations of $893.93 million. During the same period in the previous year, the business earned $0.21 earnings per share. The firm's revenue for the quarter was up 45.0% on a year-over-year basis. As a group, equities analysts predict that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal year.

Insider Transactions at Robinhood Markets

In related news, insider Daniel Martin Gallagher, Jr. sold 25,000 shares of the business's stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $100.92, for a total transaction of $2,523,000.00. Following the completion of the sale, the insider directly owned 610,949 shares in the company, valued at approximately $61,656,973.08. The trade was a 3.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Steven M. Quirk sold 60,113 shares of the business's stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $100.91, for a total value of $6,066,002.83. Following the sale, the insider owned 94,454 shares of the company's stock, valued at $9,531,353.14. The trade was a 38.89% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 5,767,854 shares of company stock valued at $569,828,413 over the last ninety days. Company insiders own 19.95% of the company's stock.

Hedge Funds Weigh In On Robinhood Markets

A number of institutional investors and hedge funds have recently added to or reduced their stakes in HOOD. Whipplewood Advisors LLC boosted its stake in Robinhood Markets by 564.4% during the first quarter. Whipplewood Advisors LLC now owns 598 shares of the company's stock worth $25,000 after buying an additional 508 shares during the last quarter. Hantz Financial Services Inc. boosted its stake in Robinhood Markets by 120.3% during the second quarter. Hantz Financial Services Inc. now owns 271 shares of the company's stock worth $25,000 after buying an additional 148 shares during the last quarter. Hemington Wealth Management boosted its stake in Robinhood Markets by 52.2% during the first quarter. Hemington Wealth Management now owns 636 shares of the company's stock worth $26,000 after buying an additional 218 shares during the last quarter. Smithfield Trust Co acquired a new position in Robinhood Markets during the second quarter worth $29,000. Finally, Wayfinding Financial LLC acquired a new position in Robinhood Markets during the first quarter worth $30,000. Institutional investors and hedge funds own 93.27% of the company's stock.

About Robinhood Markets

Robinhood Markets, Inc operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), American depository receipts, options, gold, and cryptocurrencies. The company offers fractional trading, recurring investments, fully-paid securities lending, access to investing on margin, cash sweep, instant withdrawals, retirement program, around-the-clock trading, and initial public offerings participation services.

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